K2 Principal Fund L.P. Makes New Investment in Norfolk Southern Corporation $NSC

Key Points

• K2 Principal Fund established a new Norfolk Southern position of 14,991 shares worth approximately $4.7 million during the second quarter. Institutional investors own 75.1% of the railroad operator.
• Norfolk Southern reported quarterly EPS of $3.52, exceeding estimates of $3.32, while revenue rose 12.5% year over year to $3.46 billion.
• The company declared a quarterly dividend of $1.35, equivalent to $5.40 annually and a 1.6% yield. Analysts’ average rating is “Hold,” with an average price target of $348.

K2 Principal Fund L.P. bought a new position in Norfolk Southern Corporation (NYSE:NSC - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The fund bought 14,991 shares of the railroad operator's stock, valued at approximately $4,716,000.

Other hedge funds have also recently made changes to their positions in the company. Brighton Jones LLC lifted its stake in shares of Norfolk Southern by 4.9% in the 4th quarter. Brighton Jones LLC now owns 1,706 shares of the railroad operator's stock valued at $400,000 after purchasing an additional 79 shares during the last quarter. Intech Investment Management LLC increased its position in shares of Norfolk Southern by 40.4% during the 1st quarter. Intech Investment Management LLC now owns 6,447 shares of the railroad operator's stock valued at $1,527,000 after purchasing an additional 1,855 shares during the last quarter. Sivia Capital Partners LLC purchased a new stake in Norfolk Southern during the 2nd quarter valued at $327,000. Schnieders Capital Management LLC. raised its holdings in Norfolk Southern by 64.1% during the 2nd quarter. Schnieders Capital Management LLC. now owns 4,275 shares of the railroad operator's stock valued at $1,094,000 after buying an additional 1,670 shares during the period. Finally, Jump Financial LLC lifted its position in Norfolk Southern by 185.1% in the second quarter. Jump Financial LLC now owns 4,588 shares of the railroad operator's stock worth $1,174,000 after buying an additional 2,979 shares during the last quarter. 75.10% of the stock is currently owned by hedge funds and other institutional investors.

Norfolk Southern Price Performance

Shares of NSC opened at $339.44 on Wednesday. The company has a 50 day moving average price of $326.03 and a 200-day moving average price of $312.27. Norfolk Southern Corporation has a fifty-two week low of $268.23 and a fifty-two week high of $358.60. The stock has a market capitalization of $76.24 billion, a PE ratio of 28.96, a PEG ratio of 5.92 and a beta of 1.27. The company has a debt-to-equity ratio of 0.98, a quick ratio of 0.73 and a current ratio of 0.83.

Norfolk Southern (NYSE:NSC - Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The railroad operator reported $3.52 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.32 by $0.20. The firm had revenue of $3.46 billion for the quarter, compared to the consensus estimate of $3.38 billion. Norfolk Southern had a net margin of 21.02% and a return on equity of 18.21%. The company's quarterly revenue was up 12.5% on a year-over-year basis. During the same period last year, the firm earned $3.29 earnings per share. Equities analysts predict that Norfolk Southern Corporation will post 12.66 earnings per share for the current fiscal year.

Norfolk Southern Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Friday, August 7th will be issued a $1.35 dividend. The ex-dividend date is Friday, August 7th. This represents a $5.40 dividend on an annualized basis and a dividend yield of 1.6%. Norfolk Southern's dividend payout ratio (DPR) is currently 46.08%.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the stock. Weiss Ratings raised shares of Norfolk Southern from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, July 24th. Wells Fargo & Company lifted their price target on shares of Norfolk Southern from $365.00 to $385.00 and gave the stock an "overweight" rating in a research note on Friday, July 24th. BMO Capital Markets upped their price target on shares of Norfolk Southern from $310.00 to $355.00 and gave the company a "market perform" rating in a report on Monday, July 27th. Wall Street Zen upgraded shares of Norfolk Southern from a "sell" rating to a "hold" rating in a report on Saturday, May 2nd. Finally, Stephens raised shares of Norfolk Southern to a "hold" rating in a research report on Wednesday, July 8th. Seven research analysts have rated the stock with a Buy rating and fifteen have given a Hold rating to the stock. According to data from MarketBeat.com, Norfolk Southern presently has an average rating of "Hold" and an average target price of $348.00.

About Norfolk Southern

Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.

The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.

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